Motivation Market Effects And Major Shareholders Holdings Of Shares Of Listed Companies Holdings

Since the share reform triggered the first large-scale share-raisings of large shareholders, so far, it comes to the third wave. As a new way of equity management, share-raisings becomes more and more favored by large shareholders of the listed companies, especially when the market is under the Depression, which attracts the academics to study the effects of this behavior and its significance. This paper selects some share-raisings announcement from China’s A-share listed companies from August2011to June2013as samples, study the market effects of the third stock-raisings of large shareholders and its factors, what’s more, also make a preliminary exploration about the motivations of the large shareholders.This paper uses the event study method to analyze the market effect, in order to enhance the credibility of the conclusions; we use two methods to calculate the abnormal returns, which is market model and fixed average model separately. And both methods indicate that the significant positive abnormal returns mainly occurs on the announcement day and before and after the day, the announcement day’s AR is the biggest, previous days’takes second place, next days’is minimum. Then the paper devides all the samples into two parts according to the announcement features and compare them, and then is the multiple regression analysis, we get the following conclusions:1.The market effect of the state-owned enterprise is higher than of the non-state-owned enterprise;2.Whether the enterprise promises to increase stock and release the motivation or not, it can’t bring any effects;3.The holding scale does not have any significant impact on excess returns;4. SOE’s market effect is positively correlated with market to book ratio and the stock’s previous movements, but is negatively correlated with cash flow per share, and the factors of non-SOE’s market effect is not found.Finally, establish multivariate regression models to explore the large shareholders’ motivation of SOE and non-SOE. Conclusions as following:the motivation of SOE’s large stockholders is to enhance their control power, but does not exclude they have the political motivation; non-SOE’s large shareholders increase the holdings mainly because the stock price is undervalued and they are confident of the companies’performance.